The present value of $100 to be received 10 years from today,assuming an opportunity cost of 9 percent,is: (Round to the nearest whole dollar)
A) $236
B) $699
C) $42
D) $75
E) $50

Question

Quizplus · Accepted Answer

PV = 11ea7fdb_fc2c_0507_a768_699e54bad7bd_TB2902_00 PV = 11ea7fdb_fc2c_0508_a768_03c05895e90e_TB2902_00 = $42.24
Using a financial calculator:
N = 10, I/Y = 9, PMT = 0, FV = -100, cpt PV = $42.24

The Present Value of $100 to Be Received 10 Years